1. Air Force Security Assistance Center Integrity  Service  Excellence Technology Challenges Within The FMS Process Brig Gen Joseph Lanni AFSAC/CC 26 Aug 2010 For Official Use Only

2. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Total Active USAF FMS Portfolio by Region 2 COUNTRIES: 15 CASES: 178 VALUE: $1.09 B COUNTRIES: 2 CASES: 89 VALUE: $964 M TOTAL ACTIVE FMS COUNTRIES: 100* NATO ORGS: 9 CASES: 2575* VALUE: $96.8 B* COUNTRIES: 38 NATO ORGS: 9 CASES: 1065 VALUE: $37.0 B COUNTRIES: 14 CASES: 93 VALUE: $2.65 B COUNTRIES: 13 CASES: 478 VALUE: $32.7 B COUNTRIES: 15 CASES: 668 VALUE: $22.3 B B5 for Sri Lanka, S4 for Kyrgyzstan and Kazakhstan Dollar Values and case list as of: 1 Aug 10

3. I n t e g r i t y - S e r v i c e - E x c e l l e n c e FMS Enterprise Procures Broad Range of Desired End Items Weapons Systems Services Training Parts 3

4. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Technology Tension and FMS Sales 4 COCOM Desires Interoperability Global Strategy Partner Nation Expectations US Game Changers Development Cost Recoupment National Security Time to Vet Tech Issues

5. I n t e g r i t y - S e r v i c e - E x c e l l e n c e AFSAC Leads FMS Enterprise For the USAF 5 AFSAC negotiates the hoops of the FMS process Congressional Notification SAF/IA Releasability Determination Foreign Disclosure ITAR LOA Detailed Development Coordination DSCA State Dept LOA Acceptance LOA LOR

6. I n t e g r i t y - S e r v i c e - E x c e l l e n c e LOA Development Can Present Unique Challenges 6 Partner nation’s needs, foreign policy, and domestic procurement rules guide LOA’s development & content Material & Services Line (MASL) Total-Package Approach Unique or Modified Items Releasability Determination Sensitive Equipment EW, Radar, Comm ITAR Procurement Strategy Subject to FAR (Sole source vs. competition) CAD/PAD buying cycle GFE LOR: F-16 Justification for Unique Requirements Manpower Non-recurring Charges Third Party Transfers Requirements Definition

7. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Bottom Line Take FMS into consideration early in development cycle Expectation management key Don’t oversell Leverage USG entities early and often (even in DCS) Process takes time – plan for it We Can Help…Keep USG Partners in the Loop

8. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Questions??? 8